Legal News - Panama high court OKs corruption probe of ex-president

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Panama's Supreme Court voted Wednesday to open a corruption probe against former President Ricardo Martinelli, a move likely to rally popular support in a nation where the politically powerful rarely face justice for misdeeds.

A statement from the court said all nine judges voted to appoint a special prosecutor to investigate Martinelli over allegations he inflated contracts worth $45 million to purchase dehydrated food for a government social program.

The accusation is based on the testimony of a political ally, Giacomo Tamburelli, the former head of the National Assistance Program who has said he was taking orders from the then president to inflate contracts. He is now under house arrest.

Martinelli, a billionaire supermarket magnate, has denied the charges and says he is the target of political persecution by his successor, Juan Carlos Varela, who broke with the government in 2011 while serving as Martinelli's vice president and foreign minister.

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